Up 50% in May! This T&D stock jumps another 5% to hit new record high. Is it in your portfolio?
GE Vernova T&D India share price in focus: Extending its winning streak for the sixth straight session, GE Vernova T&D India's share price surged another 5% in intraday trade on Thursday, May 29, touching a new record high of ₹ 2,334 apiece. This took the six-day cumulative gain to 29%.
The surge in demand for the stock came after the company's March quarter results beat Street estimates, helping it maintain a steady upward trend despite sharp volatility in frontline indices.
Domestic brokerage firms have also raised their target prices for the stock, lending further support to GE Vernova T&D India's ongoing rally. Since the release of its Q4 numbers on May 23 (post-market hours), the stock has jumped 24% in just four trading sessions and has gained 50% in May so far.
For the quarter ended March, the company reported a nearly three-fold jump in net profit to ₹ 186.49 crore, driven by a sharp rise in revenue, which surged to ₹ 1,173.65 crore from ₹ 919.31 crore a year earlier.
For FY25, net profit and revenue grew by 235% and 35.5%, reaching ₹ 608 crore and ₹ 4292 crore, respectively. Operating profit margin for Q4FY25 surged to 21.9%, compared to 12.1% in the same quarter last year, with FY25 closing at a robust 19.1% versus 10.1% in FY24.
In terms of order inflows, the company secured ₹ 30 billion worth of new orders in Q4 — a 125% year-on-year increase — pushing its total order backlog to ₹ 127 billion. This is nearly three times FY25 sales and ensures revenue visibility for the next three to four years.
Following GE Vernova T&D India's strong March quarter results, brokerages have revised their target prices upward. Japanese brokerage firm Nomura raised its target price to ₹ 2,600, up from the earlier ₹ 2,500, while maintaining its 'Buy' recommendation.
Domestic brokerage Nuvama Institutional Equities also raised its target price to ₹ 2,250 per share, retaining a 'Buy' rating. However, the stock has already surpassed this target during its recent rally.
Nuvama highlighted that the company's consistent base order inflow growth of 20–25% per annum, combined with HVDC optionality and sustained operating profit margins of 19.1% in FY25, remains a key growth driver.
The brokerage also pointed to a significant rise in exports, which have increased to approximately 30%, up from 20% two to three years ago. This growth is attributed to larger orders from GE's global group entities and international clients across Europe, the Middle East, Southeast Asia, LATAM, and Australia.
This export momentum is in addition to India's ongoing transmission and distribution (T&D) investment cycle, with the Central Electricity Authority (CEA) planning to spend ₹ 9.15 trillion over FY22–32, including 8–9 HVDC projects.
Of these, equipment orders for at least two HVDC projects are expected within the next 12 months — a development that could position GE Vernova as a major beneficiary in the high-voltage and extra-high-voltage (HV/EHV) segment (220 kV and above), the brokerage added.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
China silent about lifting export curbs on rare earth metals amid growing concerns in India, world
China is maintaining its export restrictions on rare earth metals, despite international pressure from the US, EU, and India. These metals are crucial for manufacturing various products, including electronics, automobiles, and military equipment. Concerns are growing globally about potential shortages and production stoppages, as evidenced by Suzuki's recent production halt in Japan due to these restrictions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads China, which holds the global monopoly over the precious rare earth metals needed for manufacturing of phones, automobiles and missiles, continues to play hardball over lifting export restrictions of the precious metals warding off pressures from a host of countries, including, the US, EU and India."China's export control measures are consistent with universal practices," Chinese Foreign Ministry spokesperson Lin Jian said responding to a question during a media briefing here on Thursday that Japanese automaker Suzuki has suspended production of its main small cars in Japan because of delays due to rare earth restrictions."Such measures are non-discriminatory and not targeted at any particular country," he said, adding that the question should be directed to competent is the second-time this week that Lin deflected a question on the growing global concerns over the restrictions over exports of Chinese rare earth Tuesday, he evaded a question about reports that executives and representatives of the car industry in Europe, the US and India expressed concern that China's rare earth export controls are creating the risk of shortages that could lead to the stoppages in production soon, saying that the question should be addressed to competent from Tokyo on Thursday said Suzuki Motor halted production of its Swift model cars in Japan from May 26 due to China's rare earth in recent weeks from India too spoke of growing concerns among the automobile manufactures about scarcity about rare earth magnets, which are critical components in electric vehicles (EVs) and even some parts of traditional internal combustion engine China's export restrictions of the rare earths specially germanium, a critical mineral that is used in manufacturing of semiconductors, fibre optic cables and solar panels, has sparked concerns in India among the respective of India as well as many other countries say they are engaged with the concerned ministries and earths are a group of metals consisting of 17 elements. Though present in several counties, their extraction is costly and messy causing massive amounts of to the International Energy Agency, currently China accounts for 61 per cent of global mined rare earth production, but controls 92 per cent of the global exports restrictions of rare earths which were imposed in June last year through a decree by Premier Li Qiang reportedly became stricter since US President Donald Trump imposed 146 per cent tariffs on Chinese week, the European Union (EU) urged China to stop restricting the export of rare earth minerals and magnets, with the bloc's trade chief saying its industries are in an "alarming situation", the Hong Kong-based South China Morning Post reported on request was made during a meeting between the sides' top commerce officials in Paris on comes as sectors across Europe raise the alarm about a shortage of rare earths, which are used to manufacture hi-tech goods ranging from electric cars and smartphones to military tanks and aircraft."I informed my Chinese counterpart about the alarming situation in the European car industry, but I would say industry as such because clearly rare earths and permanent magnets are absolutely essential for industrial production," EU trade chief Maros Sefcovic said on Wednesday, briefing reporters a day after his meeting with Chinese Commerce Minister Wang Wentao.
New Indian Express
4 hours ago
- New Indian Express
Actor Jeetendra sells Andheri plot for Rs 855 crore to NTT Global Data Centers
Veteran Bollywood actor Jeetendra and his family-owned firms -- Pantheon Buildcon Private Limited and Tusshar Infra Developers Private Limited -- have sold a land parcel in Andheri, Mumbai, for Rs 855 crore, according to property registration documents reviewed by Square Yards on the website of the Inspector General of Registration (IGR). The transaction was registered in May 2025. The land parcel, along with the built-up area, was bought by NTT Global Data Centers & Cloud Infrastructure India Private Limited, formerly known as Netmagic IT Services Private Limited. NTT, a Japanese tech conglomerate, is India's largest data center provider and a prominent IT services company. It specializes in a range of services including public and private cloud solutions, hosting, data management, application development, threat monitoring, content delivery networks, and testing services and serves customers globally. According to property registration documents from the IGR, reviewed by Square Yards, the transaction comprised two contiguous land parcels spanning a total area of 9,664.68 sq. m. (~0.96 hectares or ~2.39 acres). The site currently houses Balaji IT Park, and includes three constructed buildings with a cumulative built-up area of 45,572.14 sq. m. (4,90,534 sq. ft.). The deal incurred a stamp duty of Rs. 8.69 crore and registration charges amounting to Rs. 30,000.
Mint
4 hours ago
- Mint
Seeds of change: How Rallis India plans to double growth without spending big
Rallis India Ltd, a Tata Group company manufacturing fertilizers and insecticides, has been cruising along at a steady pace without much hustle, but a new chief is looking to overhaul the business hoping to accelerate its growth. Chief executive Gyanendra Shukla, who took charge of Rallis India in April last year, aims to double its revenue in 5 years, including through acquisitions, even as he acknowledging that the company hadn't met expectations. While Rallis India's business is profitable and stable, shareholders' expectations are different, Shukla said in an interview with Mint, explaining the company's renewed focus on growth after a few tepid years. 'They are comparing us against peers in the equity market and looking at returns and payouts. Frankly, we haven't met those expectations just yet. And that is why accelerating growth has become absolutely critical," said Shukla, who previously held leadership roles at US agrochemical company Monsanto. 'We have been sound financially, but what we have lacked is a little bit of aggression, courage, and risk-taking," he said. Tata Chemicals Ltd is the largest shareholder in Rallis India with a 55% share, while public investors own the remaining 45%. Rallis India's revenue inched up about 0.6% to ₹2,663 crore in 2024-25 from ₹2,648 crore in FY24, when revenue had declined 11%. Profit after tax fell 15% to ₹125 crore in FY25 from ₹148 crore in the previous year. Even so, Shukla is confident the company can achieve high double-digit revenue growth over the next five years without incurring large-scale investments. 'We believe our current capacity is more than sufficient for the next five years." Shukla added that while Rallis India's manufacturing capital expenditure will be incremental—there are no plans to, say, establish a ₹500-crore facility; 'that is completely off the table for now"—growth can be accelerated through inorganic opportunities. 'We are in active discussions with Japanese and global players to explore potential opportunities and collaborations. If something materialises, our first preference would be to utilise existing assets because that is the most efficient approach," Shukla said. Also read | What cooling oil prices mean for India's fertilizer companies Rallis India's growth strategy: From weakness to strength Shukla expects Rallis India's seeds, soil and plant health, and domestic crop protection businesses to be the company's key engines of growth—the seeds business is where the 'gains will come from", he said. However, of Rallis India's ₹430 crore revenue in the March quarter—slightly down from ₹436 crore in the year-ago fourth quarter—the seeds business contributed only ₹25 crore while the crop care business accounted for ₹405 crore, which includes ₹37 crore from the soil and plant health segment. Modern breeding techniques can significantly enhance seed quality without necessarily involving transgenic methods or introducing foreign genes, Shukla said. Even conventional crossbreeding involves gene transfer, but controversies over genetically modified (GM) crops arise when bacterial genes are used, he added. That said, Shukla believes there are dozens of other advanced tools in modern biotechnology that Rallis India is actively using, and 'that is where gains in the seeds business will come from". Also read | Privatization of fertilizer companies back on the menu, one small firm at a time On areas of improvement for the company, Shukla explained, 'There are still notable gaps in our herbicide portfolio, and we are addressing these through new product launches and potential collaborations. Everything does not need to be manufactured in-house." Rallis India said in its latest earnings call that herbicides, part of the crop protection business, had become the largest category in the non-core rabi crop (sown in winters) segment. However, the company admitted that it remained weak in this category. 'We are weak on cotton herbicide. We are weak on soyabean herbicide. We are weak on maize herbicide. So, all across categories, we are weak. So that portfolio, I mean that is about 30-35% of the crop protection market," Shukla told analysts during the call on 24 April. Among Rallis India's key growth strategies, according to Shukla, is to drive expansion through herbicides and fill critical portfolio gaps. This year, the company will introduce two new products, with a rice herbicide slated for next year, the CEO said, adding that some products might be phased out to make room for new ones. Also read | China's supply cut and global disturbances reduces India's fertilizer imports A bigger challenge: Global trade According to analysts at Nuvama Institutional Equities, Rallis India needs to improve its fungicide and insecticide portfolios as some of its products have not been well accepted by the market. The analysts, however, added that the company is actively working to improve product efficacy and better align its offerings with market needs. Rallis India, which earns about 80% of its revenue from the domestic market, chiefly competes with Dhanuka Agritech Ltd, PI Industries Ltd, UPL Ltd, BASF India Ltd, and Coromandel International Ltd in India. In overseas markets, its main competitors include Bharat Rasayan Ltd, Sharda Cropchem Ltd, Sumitomo Chemical India Ltd, and Meghmani Organics Ltd. The broader agrochemicals market that Rallis India operates in has been buffeted by some recent macroeconomic and geopolitical challenges. For one, following the US's trade war with China, there are concerns that Chinese suppliers may dump crop protection inventory that was meant for the US into other markets, potentially disrupting price stability in India. Also, the global crop protection market experienced a sharp decline in value terms in 2024, hurt by weak agrochemical and commodity prices, high input costs, and unfavourable weather conditions in Europe and the Asia-Pacific, according to AgbioInvestor, a Scotland-based consultancy in the agrochemical market. Also read | Tata Chemicals' Europe restructuring helps, but dull soda ash market a worry Nuvama said in a report dated 24 April that elevated channel inventory in domestic trade and patchy demand in international markets for Rallis India compromised near-term growth triggers for the company. The brokerage has a 'reduce' rating on Rallis India as it reckons the challenging business environment may restrict material improvement in return on equity from the stock. Kotak Institutional Equities, which has a 'sell' recommendation on Rallis India, flagged in a report dated 14 April that 'the (fertilizer and agricultural chemicals) industry environment remains difficult, with the tariff war further complicating an already uncertain outlook (for the industry)". Rallis India's management has clarified that only one of its major products, acephate, is subject to the reciprocal tariffs imposed by the US. Even so, domestic institutional investors (DIIs) have been gradually trimming their stake in the Rallis India stock, while foreign institutional investors (FIIs) have been steadily increasing their exposure to it. As per BSE shareholding data, DIIs held a 13.78% stake in Rallis India as of March, down from 14.78% in December 2022, while FIIs raised their holding to 11.41% from 7% in that period. While Nuvama has a price target of ₹182 per Rallis India share, Kotak has raised its target price from ₹210 to ₹230. On Thursday, Rallis India fell 1.23% to ₹318.00 per share on NSE, while the benchmark Nifty 50 inched up 0.53%.
